Loading...
HomeMy WebLinkAboutAgenda Statement 1982/10/12 Item 12aCO L AGENDA STATEMENT ITE ITLE SUBMITTED ~ When the C building f cost of th could anti It is my ~• Item 12a Meeting Date 10-12-82 Report on Cost to Remodel Old Court Facility ZY~ Assistant City Manager (4/5ths Vote: Yes No X ) ity Council approved the remo ling contract for renovating the old court ~r use as legislative field offices, staff was directed to report on the total is project and more specifically, the estimated recovery rate that the City :ipate in recapturing the dollars spent in making these improvements. RECOMMENDA ION: That the City Council: 1. A cept the report. BOARDS/COM ISSION RECOMMENDATION: N.A. DISCUSSION This repor is based on two assumptions. First, it is assumed that the City Council will accept our recommendation on the next agenda item and appropriate an additional $9,500 to complet the landscaping and off-street parking improvements to serve these areas. As 'ng t at recommendation is accepted, the total appropriations, including contingencies, wi $8 ,000. Secondly, negotiations for leasing space cannot be completed until late in vembe Present indications are that annual rents for the space contemplated for a State As emblyman and State Senator should produce about $25,800. These two areas represent ,093 square feet of the total building area of approximately 5,300 square feet. 644 square feet on the south side of the building will be leased rent-free to the First District C unty Supervisor and 894 square feet probably will not be occupied because the U.S. Congr ssman has elected not to locate his field office in the facility. Approximately 900 square feet is non-rent producing and involves the general lobby area and space for mechanical equipment. Under normal .rent conditions, this non-rent producing space would be allocat d proportionately to each of the tenants of the building but in this case both state legi lators are limited in the area that they may rent and the maximum rent they are allowed by the State. Based on p eliminary discussions with the Assembly and Senate Rules Committee of the State Legislatur we are estimating net income of $21,800 annually ($25,800 less $4,000 annual maintenanc janitorial and utility costs). This would allow the City to recover its $82,000 re odling cost in approximately 3.75 years. Rental all wances are different for Assembly space than for space occupied by a State Senator. For an Ass mblyman, the current rules provide for the maximum rent of $965 per month with no specific s ace limitations, however, in our case the area contemplated for the State Assemblyma consists of 1,545 square feet. The above figures have been developed on the basis of r ceiving the maximum gross rent per month for this 1,545 square feet. This calculates out to be about 622 per square foot, including maintenance, utilities and jan' rial service. This does not represent in my judgement prevailing rates in Chula Vi ut 'n the given situation, it is the maximum the City can receive if the. space is to leas d to a State Assemblyman. If utilities and janitorial service is not provided, the maximu rent for the Assemblyman's space is $840 per month. orm A-113 (Rev. 11/79) • • - Page 2, Item 12a • fleeting Date 10-12-82 The Senate Rules Committee has different policies but our preliminary discussions would seem to indicat that the 1,548 square feet designated fora State Senator could generate about $1,185 per month in rent, including janitorial, utilities and maintenance. This would calculate o a monthly rental of about 762 per square foot, including janitorial service, utilities nd maintenance. I believe he calculations used to develop these cost-recovery figures may be conservative particular y if an annual cost of living escalation clause in the lease agreements can be negotiated Additionally, the City Council may find another tenant that could be compatible with the p imary use of the facility and if so, additional rent from the area designated fora Cong essman would reduce the time it would take to recovery our costs. FINANCIAL IMPACT: N.A. • ~~~- by the City C~ur1c+1 ai Chula Vista, Cuiifcrnia .~,~ -6'y Dated - ~ - //U3 ~' Form No. F-229 12/73 • Certification of Unappropriated Balance CERTIFICATE OF CITY/DIRECTOR OF FINANCE I HEREBY CERTIFY that the money required for the appropriation of funds for the purpose set forth in the attached resolution is available in the Treasury, or is anticipated to come into the Treasury, and is otherwise unappropriated. Amount $ 9,500.00 Fund Residential Constr~_tinn Tax Fund Purpose Renovation of Landscapin4 and Irriga ion Systems at Old Court Facility Bidder l~ .. L~ Director of Finance The City of Chula Vista • Date 10/12/82 By Certification of Unencumbered Balance I HEREBY CERTIFY that the indebtedness and obligation to be incurred by the contract or agreement authorized by the attached resolution can be incurred without the violation of any of the provisions of the Charter of the City of Chula Vista, or the Constitution or the laws of the State of California, that sufficient monies have been appropriated for the purpose of said contract, that sufficient monies to meet the obligations of the contract are actually in the Treasury, or are anticipated to come into the Treasury to the credit of the appropriation from which the same are to be drawn, and that said monies now actually in the Treasury, together with the monies anticipated to come into the Treasury, to the credit of said appropriation are otherwise unencumbered. Amount Not to Exceed $ Director of Finance The City of Chula Vista Date Fund _ • Purpose Bidder ,~_ ~~o ~ y By Dept./Activity Certificate No. 12